Donald Trump pledges strict tariffs and taxes on global imports to boost US revenue, hinting at major trade changes.
Donald Trump, in his potential return to the presidency, has unveiled ambitious trade policies aimed at bolstering the US economy. Speaking at his inauguration, Trump highlighted plans for imposing significant tariffs on imports from various countries, declaring his intent to enrich Americans by targeting “foreign sources” of revenue.
Although specifics were not detailed in his inaugural address, Trump has previously proposed a 10 percent tariff on global imports, a 60 percent duty on Chinese goods, and a 25 percent surcharge on imports from Canada and Mexico. He justified these measures as necessary to curb illegal immigration and drug trafficking from neighboring nations.
India, often labeled by Trump as the “king of tariffs,” could face notable repercussions. In the past, he has criticised India for high duties on US goods, warning of reciprocal tariffs if these policies persist. Trump’s “America First” trade strategy aims to prioritise domestic manufacturing and safeguard American workers and families, a stance reiterated during his address.
Trump’s tariff rhetoric extends beyond individual nations. He has threatened 100 percent tariffs on BRICS nations, including India, if they pursue a common currency to challenge the US dollar. This warning followed a BRICS meeting in Russia, where the bloc discussed reducing dollar dependence in international trade.
India’s export sector, particularly industries heavily reliant on the US market, could bear the brunt of these proposed tariffs. Increased trade barriers may make Indian goods less competitive, potentially leading to decreased revenue, job losses, and slower economic growth.
Beyond trade balances, such policies could impact consumer prices. Higher tariffs may drive up import costs, fueling inflation in both countries. India might face the dual challenge of reduced exports and pricier US imports, straining its economy further.
To mitigate potential fallout, India may need to explore diplomatic channels to negotiate better trade terms with the US, ensuring stability in its bilateral trade relationship. In 2023-24, India’s trade with the US surpassed $72 billion, underscoring the importance of maintaining strong economic ties.
